New Delhi: Meta (formerly Facebook) has reported substantial losses, nearing $4 billion, in its augmented reality/virtual reality (AR/VR) division as it intensifies its focus on gaming initiatives.
In its latest quarterly results, the company, led by Mark Zuckerberg, disclosed ongoing losses in its AR/VR Reality Labs division, totaling over $1 billion monthly since June 2022, according to GamesIndustry.biz.
“We continue to anticipate significant year-over-year increases in operating losses due to our ongoing product development efforts and investments aimed at expanding our ecosystem,” stated Meta.
During the Q1 earnings call, Meta’s CFO Susan Li reiterated expectations for meaningful year-over-year increases in operating losses.
While Meta’s Reality Labs generated $440 million in revenue, the division recorded an overall loss of $3.85 billion.
Zuckerberg expressed optimism about the initial progress but acknowledged that developing leading AI technology would be a complex, multi-year endeavor.
In 2023, Meta secured 59% of the Extended Reality (XR) headset market share. By strategically reducing the price of its Quest 2 headset throughout the year, Meta attracted budget-conscious consumers, particularly during the holiday season, according to Counterpoint Research.
This pricing strategy enabled Meta to maintain its market dominance until the release of the Quest 3 in Q4 2023.
